Michael McGrath’s Post

Today Minister Michael McGrath TD and I published the Exchequer Returns for Ireland. Overall, public expenditure has grown to €94.7 billion euro, with the Government spending our full planned capital budget for 2023. The pace of spending growth will help deliver a surplus for last year of just under €8 billion euro. This will deliver a surplus that is high by international standards, but is vital to guard against the volatility of corporate tax receipts. I remain convinced that running a budget surplus, of not spending every cent that is available to you is the best insurance policy for small economies in a volatile world. This helped Ireland during the pandemic ,and helped us again as the cost of living increased so quickly. We begin 2024 on solid foundations for our public finances. This helps us to fund our ambitious plans for a better future for Ireland.

🖊️Letter to The First Minister and Deputy First Minister🖊️ Following on from our meeting with Mid and East Antrim Borough Council’s Chief Executive, Valerie Watts, Ballymena Chamber has continued to lobby on behalf of members by writing to the First Minister and Deputy First Minister raising a number of issues relating to the local economy. In addition to congratulating Michelle O’Neill and Emma Little Pengelly on their recent appointments we drew their attention to a number of matters which required Minister’s urgent attention – Business Rates – we made it clear that the continued rise in non-domestic rates was unsustainable and that both the Executive and local Councils must put a plan in place to ensure any future rises are kept to a minimum with local Council’s and the Executive putting measures in place to reduce and manage their costs. Corporation Tax – this is a disincentive to both inward investment and local companies re-investing. Chamber has suggested a graduated Corporation Tax to help stimulate investment and growth. Inward Investment – we have asked what measures are being put in place to maximise the opportunities being offered by Northern Ireland’s rather unique position, by using agencies such as Invest NI and Tourism Ireland. The Public Sector – public sector employees are customers of our local businesses, and it is imperative that their pay settlements are resolved quickly to ensure they have increased spending power, this coupled with the release of finance for capital infrastructure projects will be a significant boost to the local economy. MOT – we highlighted the problems this is causing our local car dealers and have suggested a workable solution. False Optimism – as a Chamber we are concerned that politicians think ‘everything will be ok’ as it was after Covid. However, we highlighted the fact businesses did survive but many did so only because of direct Governmental support – which has gone. Business requires stability and support. Northern Ireland is in a unique position and business must be given the opportunity to make the most of the exciting possibilities on offer. We have some exceptional businesses, hard working staff and a tremendous entrepreneurial spirit – it is the Executive’s role now to both sustain and help develop our economy. We await the FM and DFM’s reply – which we will share with you. To read the full letter go to - https://lnkd.in/eUkKnrQw

Commenting on today’s meeting between the Secretary of State and Northern Ireland’s political party leaders, Suzanne Wylie, Chief Executive, Northern Ireland Chamber of Commerce and Industry (NI Chamber) said: “This needs to be a pivotal moment, where decisions that are made now about Northern Ireland’s public finances could determine what sort of future we have for generations to come. It needs those with ultimate responsibility for our public finances to grasp the nettle and create a new fiscal framework which delivers for people and the economy. “The return of a stable, full-functioning Executive is an absolute priority. The sustainability of Northern Ireland’s public finances will be the most pressing issue that it will face. “At NI Chamber, we believe that difficult decisions about how we raise and spend money need to be taken but they must aspire to much more than a balancing of the books. “What is needed is a short, sharp independent review of public spending, a new approach to how Northern Ireland is funded from Westminster that reflects ‘need’ and a more holistic approach which supports our ambitions to be a competitive, low-carbon and inclusive economy.” https://lnkd.in/eFCM7Nvt

🖊️Letter to The First Minister and Deputy First Minister🖊️ Following on from our meeting with Mid and East Antrim Borough Council’s Chief Executive, Valerie Watts, Ballymena Chamber has continued to lobby on behalf of members by writing to the First Minister and Deputy First Minister raising a number of issues relating to the local economy. In addition to congratulating Michelle O’Neill and @Emma Little-Pengelly on their recent appointments we drew their attention to a number of matters which required Minister’s urgent attention – Business Rates – we made it clear that the continued rise in non-domestic rates was unsustainable and that both the Executive and local Councils must put a plan in place to ensure any future rises are kept to a minimum with local Council’s and the Executive putting measures in place to reduce and manage their costs. Corporation Tax – this is a disincentive to both inward investment and local companies re-investing. Chamber has suggested a graduated Corporation Tax to help stimulate investment and growth. Inward Investment – we have asked what measures are being put in place to maximise the opportunities being offered by Northern Ireland’s rather unique position, by using agencies such as Invest NI and Tourism Ireland. The Public Sector – public sector employees are customers of our local businesses, and it is imperative that their pay settlements are resolved quickly to ensure they have increased spending power, this coupled with the release of finance for capital infrastructure projects will be a significant boost to the local economy. MOT – we highlighted the problems this is causing our local car dealers and have suggested a workable solution. False Optimism – as a Chamber we are concerned that politicians think ‘everything will be ok’ as it was after Covid. However, we highlighted the fact businesses did survive but many did so only because of direct Governmental support – which has gone. Business requires stability and support. Northern Ireland is in a unique position and business must be given the opportunity to make the most of the exciting possibilities on offer. We have some exceptional businesses, hard working staff and a tremendous entrepreneurial spirit – it is the Executive’s role now to both sustain and help develop our economy. We await the FM and DFM’s reply – which we will share with you. To read the full letter go to - https://lnkd.in/e8hj_vRa

The financial pressures on local government may never have been so great. Financial sustainability of local government has deteriorated significantly in the past 5 years, and at a time when there is little appetite politically or across the community for local government to increase rates and charges. With the cost of living being a key political issue right now, AEC is keenly aware of the delicate balance required when discussing rate increases within communities, particularly where rate pegging is in effect in Victoria and NSW. The AEC Group approach to reviewing financial sustainability has highlighted concerns and provide recommendations to local governments across Australia – including over 15 councils in the past 2 years in QLD, NSW, VIC and NT. Through our collaborations with Australian Local Government Australia (ALGA), Local Government Association of Queensland (LGAQ) and Local Government Financial Professionals (FinPro) Victoria, AEC has contributed to significant reports and discussions that highlight the urgent need to correct the financial sustainability of local government. The capacity of local government to address the issues is made more difficult due to vertical fiscal imbalance in Australia where a majority of revenue is raised by Commonwealth and State governments and provided to local government through grants – refer to our study complete for ALGA in 2022. Our recent analysis for FinPro in Victoria shows that Commonwealth and State governments have grown their revenue base at a higher rate than the increase in grant funding provided to local government, increasing the problem with vertical fiscal imbalance. This is exacerbated by the restrictions placed on rate revenue for NSW and Victorian councils, at the same time as both state governments have increased property taxes and other revenue sources above the restrictions placed on local government.    There is opportunity in NSW and Victoria for local government to advocate for a more sustainable framework. The Victorian Government is currently engaged in a Committee Inquiry into the funding of local government, and the NSW Government is preparing for an extensive review of funding and resource planning for its councils. It is important that the local government voices are heard.   LGAQ Cost Shifting Report:(https://lnkd.in/gTqYd36t) Committee Inquiry: (https://lnkd.in/gFRhnSfJ) NSW Government, Terms of Reference draft: (https://lnkd.in/gVT3zBBu) For further discussion or to seek customised advice, visit aecgroupltd.com   #LocalGovernment #FinancialSustainability

🚨 Finance Watch statement on European Parliament #fiscal rules vote 🚨 Today, a vote in the European Parliament cleared the path for the final stage of negotiations on reforming the EU fiscal rules. Finance Watch, the non-profit association dedicated to reforming finance in the interest of citizens, argues that the shortcomings in the text agreed today by the European Parliament Committee on Economic and Monetary Affairs (ECON) will harm EU citizens and the economy. Commenting on the news, Benoît Lallemand, Finance Watch Secretary General, said: “The EU fiscal rules will directly affect the lives of EU citizens - from the cost of living to employment, health and education. Four years on from the COVID-19 pandemic, we’re facing challenges on multiple fronts, and addressing them means public budgets and investments must play a bigger role. More public spending is needed to accelerate a transition to renewable energy sources that leaves no one behind and increases the strategic autonomy of the EU economy. It’s also fundamental in preserving financial stability. Economists across the political spectrum agree that the fiscal rules now on the table still fall back on outdated ideologies and a macrofinancial regime that no longer exists.  How Members of the European Parliament vote on this issue in the April plenary session, and what politicians then campaign for in the run-up to the EU elections, will show on which side of history they stand.” Additional background: Finance Watch, the non-profit association dedicated to reforming finance in the interest of citizens, has been following this topic closely for the past three years, publishing several key reports and working as part of the #FiscalMatters coalition to push for the fundamental reform of the EU fiscal rules. According to the #FiscalMatters coalition, the text adopted today in #ECON adds several positive elements, including common EU priorities brought from the annex to the body of the text, carving out a small exemption for investments linked to EU funds, the inclusion of the social convergence framework, an obligation to report investment gaps, stakeholder participation requirements, a demand to improve the debt sustainability analysis (DSA), and strengthening the role of national fiscal institutions. However, the text introduces arbitrary and complex safeguards forcing EU countries to reduce their debts and deficits at an unnecessarily fast pace, while also not paying sufficient attention to the quality of public spending. These shortcomings stand to undermine the overall effectiveness of the new rules if not reconsidered during trilogue negotiations. Read more about this key issue on our new website: https://lnkd.in/evEmFZ58

Today's Local Government Information Unit (LGIU) report tells a familiar story about the challenges of local government finance, but a chastening one nonetheless. 9% of local authorities surveyed think it is likely or very likely that they will issue a Section 114 notice in the coming financial year if there are no changes to local government finance. A third of respondents reported that the budget for 24/25 would lead to cuts in services that would be evident to the public. As well as the risk to social care, many local authorities are anticipating cuts in highways, housing and business support programmes, which will further exacerbate the productivity challenge. It's interesting to pair this with the most recent report on British regional disparities from the Mossavar-Rahmani Center for Business and Government at the Harvard Kennedy School. There is some good analysis in this report on how other countries - France and Spain specifically - made a rapid and significant shift to stronger local and regional government in the 1980s. There may be some useful lessons for the UK from these experiences. What is clear is the need for a long-term and sustainable settlement (funding and powers) that enables local government to fulfil their role into the future. https://lnkd.in/eVmut63b

I today had the honor of speaking after Denmark’s Minister of Finance Nicolai Wammen at the launch of the Nordic Economic Policy Review: Fiscal Policy in Uncertain Times. *** Kære nordiske venner The The Nordic Council of Ministers and The Nordic Council was established in 1971 to strengthen and expand the institutional foundations for co-operation between the Nordic countries. Today, more than fifty years later, it serves as the official and primary body for cooperation between the Nordic governments. Five years ago – in 2019 – the Nordic Prime Ministers agreed on a joint vision: That the Nordic region shall be the most sustainable and integrated region in the world by 2030. This is a bold and ambitious vision that requires political action and close Nordic cooperation on three strategically important fronts: - To deliver on the green transition to meet our ambitious climate goals - To safeguard and strengthen the competitiveness of our region and our economies, not least in regard to rapid technological advancement - And to ensure socially coherent Nordic societies. Developments over the last few years, not least the difficult geopolitical situation, have underscored the need to foster stronger, and more resilient Nordic economies and societies and to ensure our capabilities to withstand external shocks and pressures – being economic, political, or beyond. At the NCMS, we are working strategically – for the Nordic governments – to deliver on this vision, by fostering close cooperation and learning in the Nordics. Earlier this week, our Nordic ministers for finance and economic affairs met in Stockholm to discuss economic policy challenges and priorities of mutual Nordic importance. The ministers adopted a joint 6-year cooperation programme that outlines the political priorities and defines specific goals for Nordic cooperation in the Finance Ministers’ Council for the next six years. The programme is focused on two overarching policy goals: - to cooperate on ensuring that economic and fiscal policies in the Nordic countries enable and promote a green transition that is both cost effective and social just. - to cooperate on policies at national and joint approaches at international level to strengthen the competitiveness, resilience and integration of the Nordic economies. Including by addressing hinders to Nordic labour market mobility and economic integration. Economic and fiscal policies and the cooperation among Nordic countries on these issues is pivotal to achieve our Prime Minister’s vision for 2030 and to create a greener, more competitive and socially coherent Nordic region. The NEPR is a recognized and valuable instrument of the Nordic Council of Ministers to support just this. To strengthen knowledge on key economic and financial policy issues the Nordic countries are facing. And to provide academically founded policy recommendations to Nordic Finance Ministers and policy makers. #norden #nrpol

Patricia Callan on behalf of Financial Services Ireland (FSI) congratulates Ireland’s new and returning MEPs on their election to the European Parliament and calls on them to use their voice in Europe to promote the growth and development of Ireland’s financial services sector at both the European and Irish levels. Our MEPs have a critical role in driving the ongoing success and expansion of Ireland’s financial services sector. Financial Services Ireland calls on our new EU representatives to advocate for policies that will solidify and enhance Ireland’s status as a global leader in the financial services industry, specifically: ·   Driving EU capital markets growth to meet the needs of the EU economy. ·   Expanding long-term capital reserves and fostering innovation-driven enterprises. ·   Creating a transparent and efficient financial ecosystem. These policies will ensure that Ireland has the regulatory environment, innovation, and talent pipelines necessary for continued growth in the sector, which employs over 123,500 people and contributes more than €6.8 billion in taxation to the Irish economy annually. We will closely monitor the appointment process for the new Commission and are eager to engage with the new Commissioner for Financial Services and the new Irish Commissioner. We look forward to continuing the productive work initiated with Commissioner Mairead McGuinness, whom we thank for her leadership in recent years. Seán Kelly MEP, Billy Kelleher MEP, Kathleen Funchion, Michael McNamara TD, Cynthia Ní Mhurchú, Luke Ming Flanagan, Barry Cowen TD, Nina Carberry, Maria Walsh, Ciaran Mullooly, Barry Andrews, Lynn Boylan, Regina Doherty, Aodhán Ó Riordáin

**Navigating the UK Financial Crisis: Key Points and Tax Saving Tips** The UK is facing a significant challenge with a $28 billion spending hole, prompting drastic measures like cutting road and rail projects. Here's a closer look for business owners: 1. **Factors Behind the Spending Hole:** - Economic Slowdown: Sluggish growth reducing tax revenues. - Increased Public Spending: Higher expenditure on healthcare and social services. - Global Economic Uncertainty: Geopolitical tensions adding fiscal burdens. 2. **Impacts of Spending Cuts:** - Suspension of Infrastructure Projects: Important road and rail projects on hold. - Job Losses: Potential layoffs in the construction and engineering sectors. - Consumer Impact: Affects daily commutes and overall quality of life. 3. **Government's Strategic Measures:** - Fiscal Policy Adjustments: Possible changes to tax policies and spending programs. - Priority Re-assessment: Focusing on projects with immediate economic benefits. - Public Consultations: Engaging with stakeholders for input on managing cuts. 4. **Long-term Solutions:** - Boosting Economic Growth: Stimulating economy through innovation and trade. - Reducing Reliance on Borrowing: Creating sustainable financial policies. 5. **Effects on Taxpayers:** - Increased Tax Burden: Potential for higher taxes reducing disposable income. - Changes in Public Services: Possible quality and availability reductions. - Investment Opportunities: New policies may foster investment in emerging sectors. **Tax Saving Tips During Fiscal Tightening:** - Utilize Tax-efficient Investments: Consider ISAs and pension schemes. - Take Advantage of Allowances: Maximize use of all tax allowances and reliefs. - Seek Professional Advice: Navigate complex tax laws with expert help. Stay ahead by connecting with experts like Together CFO for personalized tax-saving strategies. Schedule a call today: **[setup a call with our team](https://lnkd.in/gAa4dwUG. Engage with us! How are you preparing for these financial changes? Comment below or reach out to discuss further.